Amreli Steels, one of Pakistan’s leading steel producers, reported a 20pct YoY reduction in losses for Q1 FY26 ended September 30, 2025, posting a net loss of PKR 790 mln (USD 2.79 mln) compared to PKR 992 mln a year earlier. The improvement, despite weaker sales, reflects early signs of stabilization driven by cost optimization measures and a decline in interest rates, the company said.
Revenue fell 34pct YoY to PKR 2.79 bln (USD 98.6 mln), primarily due to flood-related disruptions in Punjab, limited working capital amid ongoing financial restructuring, and underutilized capacity.
Amreli noted that while macroeconomic conditions remain difficult, signs of stability have emerged with moderating inflation and a relatively steady rupee under the IMF-supported reform program. However, high energy costs, elevated interest rates, subdued construction activity, and influx of untaxed steel continue to pressure the formal sector.
Looking ahead, the company expects a gradual recovery as financing lines normalize and operations stabilize, supported by tighter cost discipline, improved liquidity, and higher capacity utilization.
Amreli Steels maintains an annual production capacity of 600,000 tons for billets and a rebar manufacturing capacity of 605,000 tons per annum.
1 USD / 283 PKR
